Villa World Limited Announces Dividend Guidance for the Year 2014; Announces Board Changes; Provides Earnings Guidance for the Fiscal Year 2014 and Sales Guidance for the Fiscal Year 2015; Announces Sales Results for the Ten Months to April 2014
May 28, 2014 at 08:43 pm EDT
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The Board of Villa World Limited announced that it confirms its dividend policy to return to a full year payout ratio of 50% - 75% of NPAT. The board anticipates a final dividend of 9 cents per share fully franked, subject to the company's results for the full year. If declared, the final dividend will be payable in October 2014 and would bring dividends for the full year to 15 cents per share.
The company board announced that Mr. Mark Jewell, who became a director in November 2013, has accepted the role of chairman effective May 28, 2014 in place of Mr. Craig Treasure. This separates the role of chairman and managing director, in line with ASX corporate governance recommendations. The board is continuing its search for a fourth director, with skills that complement existing members.
For the fiscal year 2014, the company expects profit in the range of $20 million to $22 million net profit before tax. The company confirms that guidance, and expects its final result (subject to audit) to be towards the higher end, and possibly in excess of that range, depending on the timing of settlements at Cascades on Clyde (VIC) 1 and stage 6 at Circa (QLD). The Board's intention is to recognise a portion of the remaining $22.0 million carried forward tax in second half of 2014, reducing the company's effective tax rate in second half of 2014 and having a positive impact on fiscal year 2014 NPAT.
The company recorded 726 sales in the ten months to April 2014 across 18 projects. Cascades on Clyde (VIC) and Park Vista (QLD) continued to record the highest sales during the financial year to date. Other projects, with the exception of Little Creek, performed well, whilst five projects 2 sold out during that period. At 30 April 2014, the company is carrying forward 245 lots 3 worth $102.5 million 4 which will settle in fiscal year 2015/fiscal year 2016. The majority of sales to be carried forward into fiscal year 2015 are expected to accounting settle in first half of 2014. Sales occurring in the month of May and June will largely fall into fiscal year 2015.
There will be a focus in fiscal year 2015 on delivering and settling carried forward sales, increasing the level of available stock by accelerating future stages of existing projects and bringing to market recently acquired projects. Restocking the pipeline for the medium term is also a priority for the company. Further guidance for fiscal year 2015, including carried forward sales as at 30 June 2014, will be provided with the release of the fiscal year 2014 results.
Villa World Limited is a property developer and housing provider. The Company's principal activities include the development and sale of residential land, and the development, construction and sale of house and land packages. It operates through two segments: Property development and construction - Queensland and New South Wales, and Property development and construction - Victoria. It develops and sells residential land and buildings in Queensland, New South Wales and Victoria. Its portfolio includes approximately 5,940 lots. Its properties in Brisbane include AFFINITY-THORNLANDS, EMINENCE-BRIDGEMAN DOWNS, RIVA-JOYNER, SEASCAPE-REDLAND BAY, THE SANCTUARY-WOODLANDS and WATERLINE-THORNLANDS. Its properties in Gold Coast include ARUNDEL SPRINGS-ARUNDEL, PARKSIDE-COOMERA and SEABRIGHT-JACOBS WELL. Its properties in North Queensland include AUGUSTUS-HERVEY BAY and LITTLE CREEK-GLADSTONE. Its properties in Victoria include CARDINIA VIEWS-PAKENHAM, LAVINIA-GREENVALE and SIENNA-PLUMPTON.
Villa World Limited Announces Dividend Guidance for the Year 2014; Announces Board Changes; Provides Earnings Guidance for the Fiscal Year 2014 and Sales Guidance for the Fiscal Year 2015; Announces Sales Results for the Ten Months to April 2014